When most people nowadays think of financial shares, their mind immediately goes to the Big Six Banks. It is no surprise, Canadian banks have long been seen as the loyal market, especially when investors are looking for dividends and stability. But there is one name that continues to fly under the radar despite offering solid income, international growth and smart innovation: Manulife Financial (TSX: MFC). Although some investors may be wary of the insurance sector, I would claim that Manulife is exactly the kind of contrary bet that is now logical.
The figures
At first glance, the results of Manulife’s Q1 2025 seem mixed. The nuclear profits came to $ 1.8 billion, a slight decrease of 1% year after year. The net income fell more steep, by 47% to $ 485 million. But dig deeper, and you will see that this is a case of optics that overshadows the progress. The nuclear profit per share (EPS) actually rose by 3% to $ 0.99 and book value per common share climbed by 12% to $ 25.88, which was a reflection of strong underlying fundamentals.
What is even more important, the dividend share reported new insurance results. Annual Premium Equivalent (APE) Turnover rose by 37%, New Business CSM (contractual service margin) climbed 31%and the new business value rose 36%compared to the same quarter last year. That is not only growth, it is an impressive momentum, especially in a worldwide environment where many financial companies return.
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Asia stood out as the clear growth engine of Manulife, with an increase in the new business value by 43% and an increase in APE sales by 50%. The dividend stock also expanded its BANC-ASSURANCE deal with Chinabank in the Philippines with another 15 years, a movement that locks access to a fast-growing market.
In the meantime, in the US, despite placing a loss as a result of wild-fire-related provisions and increased expectations of loss of credit, the dividend shares still managed an increase in the new business value by 30% in that region. The nuclear profits from the US were $ 251 million, even with the headwind. Canada delivered solid, if not spectacular results, with a nuclear wins with 3% and new business value an increase of 15%.
What Manulife really distinguishes from the banks is long -term trends. Life insurance, asset management and pension planning all are increasing worldwide, especially in Asia. Manulife doubles these opportunities through digital innovation and new product launches, including a hybrid indexed universal life insurance product in the US
Consideration
The market has not yet exactly rewarded Manulife for its performance. The dividend stock has largely strived for water in recent months. That is exactly why it is worth a look. Investors have priced in the decrease in the net result without recognizing the clear signals of growth and strength in the long term. For those who are willing to take the long representation, this offers a rare opportunity to buy a company with a modest 23.9% financial lever ratio and a strong repayment program. All signs of a company that carefully manages its capital.
And let’s not forget the dividend. The current yield of Manulife is comfortable above 4.2%and offers a steady electricity income while waiting for the market to catch up with the basic principles.
Of course there are risks. The American long -term health insurance activities remains a complicated old challenge. Market volatility could put pressure on the streams of global assets management, and the net income volatility as we saw in Q1 will not disappear at night. But these are manageable risks for a company that is clearly on the front foot when it comes to growth, innovation and shareholder value.
Bottom Line
So if you are looking for exposure to the financial sector and go beyond the usual bank names, Manulife can be the counter -betting that is bearing fruit. It has the global scale, the diversified business model and the overview to continue to grow, even if the rest of Bay Street has not yet completely caught.
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